Market Update: Tariff Concerns as Big Names Post Earnings

Market volatility is looming as the White House announces a 25% tariff on Canada and Mexico. Apple, Intel, and Visa release earnings that exceed estimates, showcasing resilience in revenue growth. Investors should be cautious amidst tariff impacts while some companies demonstrate solid performance.

Date: 31-01-2025

AI Rating: 7

Market Context: The recent announcement of a +25% tariff on Canada and Mexico is likely to impact market sentiments negatively. Canadian retaliation adds further uncertainty, which could create pressure on companies reliant on these markets.

Earnings Per Share (EPS): Notable companies have reported earnings before the market close. Apple (AAPL) reported earnings of $2.40 per share, surpassing expectations by 4 cents. Intel (INTC) reversed its two-quarter earnings dip with a reported EPS of 0.13, beating expectations by a cent. Visa (V) achieved $2.75 per share, exceeding the anticipated $2.66. Deckers (DECK) posted an impressive EPS of $3.00, above the $2.60 estimate. The overall trend in EPS suggests a positive performance from these companies despite broader market volatility.

Revenue Growth: Apple generated revenues of $124.3 billion, slightly ahead of the expected $124.5 billion despite iPhone sales underperforming. Intel's revenue hit $14.26 billion, exceeding the $13.78 billion consensus. Visa brought in $9.5 billion in revenue, surpassing expectations. Deckers outperformed with revenues of $1.83 billion against a prediction of $1.71 billion. This revenue growth demonstrates strong consumer demand, especially in Visa and Deckers' cases.

Overall Analysis: While there are concerns in the market related to upcoming tariffs, the positive earnings reports indicate robust performance from major companies like AAPL, INTC, V, and DECK. The positive surprises might buffer some of the tariff-driven volatility, but caution remains advisable for investors looking at broader market implications.

Stocks: AAPL INTC V DECK